N.Y. Public Authorities Law § 1740: Use of outside design, drafting or inspection services

§ 1740. Use of outside design, drafting or inspection services. 1. All

design, drafting or inspection services necessary in connection with the

approved educational facilities capital plan shall be performed by

appropriate employees of the authority, except as otherwise provided in

this section.

2. a. The authority will undertake design, drafting and inspection

services with employees of the authority so that (i) not less than

twenty percent of such work performed in the years ending June

thirtieth, nineteen hundred eighty-nine, and June thirtieth, nineteen

hundred ninety will be so undertaken; (ii) not less than thirty percent

of such work performed in the year ending June thirtieth, nineteen

hundred ninety-one will be so undertaken; and (iii) not less than forty

percent of such work performed in the year ending June thirtieth,

nineteen hundred ninety-two and thereafter will be so undertaken. Each

such percentage shall be determined by the value of the work performed

for its respective fiscal year for such design, drafting and inspection

services in the approved educational facilities capital plan.

b. Notwithstanding the provisions of paragraph a of this subdivision,

design, drafting and inspection services may be performed by persons

other than employees of the authority in any given fiscal year when the

amount of services allowed to be performed by persons other than

employees of the authority pursuant to the provisions of this

subdivision have been exhausted for that fiscal year, and when:

(1) Performance by persons other than employees of the authority is

necessary to avoid a conflict of interest, as defined in regulations

promulgated by the authority, and is a direct consequence of an accident

or other unforeseen circumstance; or

(2) (A) Current employees of the authority are otherwise engaged and

cannot be reassigned to perform the services; (B) new employees cannot

be hired within a reasonable time to perform such services; and (C) such

services are needed in connection with work undertaken in response to an

emergency. For purposes of this subparagraph, the term "emergency" shall

mean a situation involving danger to life, safety or property which

requires immediate action, is essential to efficient operation or the

adequate provision of service by the city board or the authority, and is

a direct consequence of an accident or other unforeseen circumstance.

3. a. Design, drafting or inspection services above the minimum

percentages reserved for employees of the authority pursuant to

paragraph a of subdivision two of this section may be performed by other

than appropriate employees of the authority if to do so is (i) cost

effective, (ii) required to obtain special expertise not available

through the appropriate employees of the authority, (iii) required to

perform a service of short duration, (iv) required to respond to an

emergency, or (v) required to avoid a conflict of interest.

b. Prior to executing a contract for design, drafting or inspection

services pursuant to paragraph a of this subdivision, the authority

shall prepare a specific statement which sets forth the objective data

supporting the reasons why the proposed contract meets one or more of

the requirements set forth in such paragraph. Where use of the contract

is stated to be in compliance with subparagraph (i) of such paragraph,

such statement shall include certification that the contract will not

cause the displacement of authority employees.

c. (1) Prior to the scheduled award of the contract proposed to be

awarded pursuant to paragraph a of this subdivision, the authority shall

provide all employee organizations that represent authority employees

who would otherwise perform such work with copies of the statement

rendered pursuant to paragraph b of this subdivision and the proposed

contract so that each such employee organization shall have at least

fifteen days to object to the proposed contract. Any employee

organization which provides a timely written notice of objection and the

reasons therefor shall, unless the authority agrees in writing to

withdraw the proposed contract, be permitted to be heard by the

authority's trustees prior to the award of the contract.

(2) Notwithstanding the provisions contained within subparagraph one

of this paragraph, the employee organization may be provided less than

the required fifteen days to object to the proposed contract when the

contract is required to respond to an emergency as defined in

subparagraph two of paragraph b of subdivision two of this section;

provided, however, that all other provisions of such clause shall be

observed.

4. No later than ten days prior to the date set by the city charter

for the holding of hearings on the mayor's annual preliminary budget

statements for capital projects, the authority shall prepare a report

specifying the projects from the approved educational facilities plan

which the authority plans to commit to during the next fiscal year. If

the authority intends to contract for design, drafting or inspection

services in connection with any project so specified, the report shall

further specify (i) for which projects the services are needed; (ii) the

type of services to be provided pursuant to contract; (iii) the

estimated cost of the contract; and (iv) the reason or reasons why award

of the contract is consistent with this subdivision. The report shall be

filed in the authority's office and in the office of the city board, and

shall be available to the public upon request. The authority shall file

revisions to the report so as to provide advance notice of not less than

thirty days of additional projects that the authority plans to undertake

on which the authority intends to contract for design, drafting or

inspection services. Such revisions shall be in accordance with the

criteria of this subdivision. Such revisions shall also identify

projects which the authority included in its report but which the

authority does not intend to pursue in the applicable fiscal year. The

authority shall file such revisions in the authority's office and in the

office of the city board, and such revisions shall be available to the

public upon request. Such report and revisions shall not preclude the

authority from entering into contracts or undertaking projects.

5. Nothing herein shall be deemed to create a cause of action against

the authority challenging the board's determination to award a contract

pursuant to subdivision three of this section, except to challenge a

failure by the authority to adhere to the process set forth in

paragraphs b and c of subdivision three of this section.